This is a re-print from a post I made over a year ago. I think its always good for Memphis real estate investors to get a refresher on the questions they should ask before buying investment properties.
If you've ever listened to one of my webinars introducing Memphis Invest, you've me heard me say time and time again that this is absolutely a people business and has very little to do with the product. That's speaking strictly from the providers point of view of course. But what about from the investor's point of view.
Purchasing investment real estate in Memphis has always been about the value you get with the product. Is the property located in the right neighborhood, is it priced at a truly valuable price point, are the numbers provided for you in line with reality?
These are all questions you have to ask yourself when decide to invest in real estate whether it's located in Memphis or any other city for that matter. But, don't forget the most important question you can ask. Who am I dealing with?
It's unfortunate that not every company in our particular industry is run by the highest level of professional and that might be putting it mildly. Be sure that you ask the right questions and do your homework before proceeding with purchasing an investment property.
Here is a quick sampling of what I would ask:
- How many investment properties do you personally own?
- How many investment properties has your company purchased/sold this year?
- Can you verify your numbers?
- Can I speak directly to your referrals & testimonials?
- Who will I contact if there are problems with the purchase, rehab or management?
- How do you determine your stated property statistics & numbers?
- What happens if your numbers are wrong?
- How many years have you been in this business?
- Do you have any business referrals we can contact today?
Nine simple questions that can help you to make sure you are dealing with the highest caliber person or company possible. If the company you are dealing with cannot answer any of these questions honestly and quickly, then you do not need to walk away. You NEED to RUN!
You see, the houses are almost all the same. If you are following the right criteria and following your formula for success (see previous blogs!), then you know that the property you are interested in is going to be a winner. Now make sure the company you are dealing with is a winner as well!
There are a lot of great investment property companies here in Memphis run by very good people. It is not for me to decide or even tell you as a rental property investor who is good and who is bad. What I can tell you, is that by asking the right questions and really paying attention to the answers you get, you can quickly get though all of the marketing hoopla and get down to real professionals.
When you decide to invest in Memphis real estate or even that you are going to become a real estate investor in general, make sure that you do your homework, ask the right questions and be diligent.
After all, it's only your future.....
To all your success!